Human Flashcards

1
Q

Disney as a TNC?

A

In 2006, Disney’s income was $32 billion

Disney is a new economy brand – based more on creativity, finance, media and finance but not the production of goods

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2
Q

How do companies grow?

A

Expansion - popularity of its product
Merger - Takes over its rivals
Diversifying - Companies take over others which do not sell similar products

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3
Q

Positives of Disney as a TNC?

A

Disney operates a just-in-time system where it can judge a success of a film before investing in its merchandise and will outsource its manufacturers, demand quick delivery times and will not have to own expensive factories or production lines – this ensures very profitable products
Employs 130,000 directly and 40,000 suppliers indirectly across 50 countries

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4
Q

Negatives of Disney as a TNC?

A

Disney’s cheap outsourcing still means that workers can be paid very low wages, in 2006 Bangladeshi workers were paid $0.15 for every $17.99 shirt they sewed, the factory was later closed and the workers went without compensation
In 2007 toys manufactured in China were recalled after they were found to contain dangerous levels of lead in their paint.
I love willy

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5
Q

How does Disney contribute to cultural Globalisation?

A
  • ‘Mulan’ was used to gain access to China
  • ‘Hunchback of Notre Dame’ launched to re-brand Disneyland Paris
  • ‘The Lion King’ aimed at Africa
  • ‘Aladdin’ aimed at the Middle East
  • ‘Finding Nemo’ aimed at Australia
  • Disney spreads into global markets yet its characters remain Americanised, causing a spread of the American culture around the world
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6
Q

‘Disneyfication’?

A
  • Disney-themed fast food outlets
  • Resort tourism with everything on site
  • The French government paid $2 billion towards EuroDisney providing 30,000 jobs
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7
Q

What is globalisation?

A

The process by which people, their cultures, money, goods and information can be transferred between countries with few or no barriers

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8
Q

Causes of globalisation?

A
Decreased Cost of communication
Reduced time lapse of information transmission (From morse code to Internet)
Increase in technology
TNCs
Transport (Boeing A380 853 passengers)
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9
Q

Financial impacts of globalisation?

A

TNCs now have higher incomes than the GDPs of some countries
Trillions of dollars are exchanged electronically daily
Worldwide reduction in consumer prices

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10
Q

Political impacts of globalisation?

A

Companies such as News International influence how people think and vote
Political organisations such as EU spread political control through multiple countries
Loss of national identity
TNCs gain control over governments

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11
Q

Impacts of globalisation on people?

A

People with skills in demand such as IT, finance and management move around the world to where they are needed or want to live
Migrant labour moves to places of higher wages

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12
Q

Cultural impacts of globalisation?

A

‘Americanisation’
‘Global village’
Music, TV and media spread Western culture

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13
Q

Colonialism examples?

A

British Empire – Britain would colonise areas, create free trade between them, buy raw materials, produce products in its own factories and then sell back its products to the countries for higher prices. (Core and Periphery theory)
After the Second World War America sent aid to many countries to stop the spread of communism, this made them dependent on aid but grew their economies rapidly. These countries included: Japan, Singapore, South Korea, Taiwan and Mexico.

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14
Q

What is a core?

A

Owns 80% of global goods and services
Earns highest incomes
25% of population

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15
Q

What is the periphery?

A

Owns and consumes 20% of global goods
Has 75% of global population
2.5 billion people live with less than $2 a day

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16
Q

What does colonialism do?

A

Switches on an area

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17
Q

Trade bloc examples?

A

NAFTA - Canada, USA, Mexico

EU

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18
Q

Global trade group examples?

A

WTO (World Trade Organisation)
OECD (30 wealthiest countries)
OPEC (Organisation of Petroleum Exporting Countries

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19
Q

Africa’s debt crisis?

A

1970s – OPEC raised the price of oil
OPEC countries banked their earnings in Western Banks
The banks lent this money to developing countries for huge infrastructure projects
1980’s – Global interest rates doubled
Developing nations became crippled by debt
The IMF created a Structural Adjustment Package (SAP) to make the payments more affordable – the governments had to reduce spending in their countries however
Without IMF approval, no debtor country could get further credit. SAPs became compulsory.
The African countries mostly cut funding to healthcare and education as part of the SAP agreements – this mostly impacted the poorest people.

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20
Q

Debt crisis and Zambia?

A
  • Zambia used to be rich from copper – produced 25% of its GDP
  • 1990’s price of copper fell due to fibre-optic cables
  • GDP fell in Zambia and its debt became the amount of 2 and ¼ of its GDP
  • The government had to cut spending on healthcare and education
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21
Q

TNCs scale of control?

A

Account for 25% of worlds economic activity
Employ 1% of total workforce
In 2006 Exxon Mobil made a higher profit than the GDP of Saudi Arabia

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22
Q

How do TNCs grow?

A

Motive - Capitalist ideology leads to desire for profit
Horizontal integration - Buying up the competition (Ford bought Jaguar, Volvo and Landrover to spread to European markets)
Vertical integration - Owning all stages of production (Exxon Mobil owns its oil wells, tankers, refineries and pumping stations
Economies of Scale - Expand production to increase efficiency and reduce production costs (Buy in bulk - Tesco)

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23
Q

Mobility of TNCs growth?

A

Accelerated and cheaper transport - larger container ships
Accelerated communications - Fibre Optics
Production technology - ‘Just in time’

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24
Q

Tesco as a TNC supermarket

A

In 2004, when 10 new countries joined the EU trade bloc, Tesco gained 75 million new customers
In 2007, Tesco operated in 12 countries
In 2007, Every £1 in £8 was spent at Tesco

25
China's growth into the worlds fastest economy
1986 – ‘open door policy’ – capitalist economy Massive population and abundance of natural resources provided for industrialisation Government spending on healthcare on education for 50 years provided a literate, healthy workforce Export Processing Zones – no duties or tariffs – (EPZ) have stimulated cheap mass manufacturing In 2001 China joined the WTO (World Trade Organisation) – TNCs invest 53% of exports are produced by foreign companies 60% of world trade since 2004 is because of China
26
Positives of China's growth?
Zhejiang Export Processing Zone Export values rose from $5 million to $29.4 million from 1978-2002 30% of worlds socks made here Governments ‘1000’ project – 1000km of high quality roads, 1000 kw power stations, improved 1000 farms Literacy now 100% after education became compulsory
27
Negatives of China's growth?
* 20% of population lives on less than $1 a day * 70% of lakes and rivers are polluted * 360 million people live without access to unsafe drinking water * China has the top 16 dirtiest cities in the world
28
What is a source nation?
A country which migrants come from
29
What is a host nation?
A country which people migrate to
30
The impact of migration on host nations
2002 UK expanded its Highly Skilled Migrant Programme - Attract the brightest foreign workers - Fill skills shortages - Attract lower skilled workers where it is harder to fill vacancies - Balance the UK's raging population
31
The impact of migration on source nations
- Remittances are sent home (In 2006 it equaled $233 billion) - Creates a brain drain which slows countries development
32
The digital divide
The inequality of communications between places | Africa only had 34 million internet users in June 2007 compared to 322 million in Europe
33
Migration to Spain
Spain’s population growing at 2% per year Foreigners make up 9.3% of the population Ageing population – government encourages young migrants – 65% of migrants are between 16 and 44 Most migrants come from Morocco and Ecuador – Spain colonised them and they speak Spanish as the national language Recruits migrants for the three-D jobs (Dirty, dangerous and difficult) SAWS (Seasonal Agriculture Workers Scheme) – EU scheme to allow Eastern European countries to work in places such as Spain 250,000 British retire in Spain per year (enclave at Cost Del Sol and Alicante)
34
EU structure and its migration policies
Before 2004 was a trading bloc with 15 members Movement easy since 1995 Schengen agreement Accession 10 in 2004 Accession 2 (Romania and Bulgaria) 2007
35
Economic pull factors of migration?
Better chance of seasonal or full employment than in their host country Better pay, training and career opportunities Higher GDP and purchasing power
36
Economic push factors of migration?
Unemployment in source country - high unemployment in Poland so many moved to UK Change in political structure - Satellite states and centrally planned economies turn to privatisation since the fall of the USSR leading to the loss of state jobs and inward investment
37
Why are migrants needed?
'Replacement migration' - fill unemployment Fill 3D jobs Fill service jobs to support locals Fill seasonal jobs which locals do not undertake
38
Syrian Migration
Over 1 million migrated to Europe in 2015 136,00 people reaching Europe by sea since the start of 2016 UK promised to take 20,000 over five years First 1000 already in UK
39
What problems does migration cause?
Exploitation Trafficking Lack of social cohesion leads to extremism and violence - - November 2015 Paris Attacks - France has a large Muslim community that is excluded
40
Reasons for increase in elderly?
Ageing population Increased personal wealth for private health care Increased national wealth and spending on NHS Both Labour and Conservative governments spending money on NHS Improved education and understanding of a health lifestyle 1.2 over 85s in UK
41
Change in UK's population structure
The number of 65s outnumbers the number of under 16s for the first time
42
Four main baby booms in UK?
After WW1 when soldiers returned home (early 1920s) From 1930s depression to end of WW2 there was a decrease birth rate Baby boom after WW2 with peak at over 1m in 1947 Early 1960s prosperity baby boom During late 80s and early 90s the women born from the 1960s boom entered a fertile age
43
Why are women having babies later in life?
Higher levels of divorce or separation (1/2) | Women perusing a career
44
Economic opportunities for greying population?
Grey pound (lots of wealthy old people innit)
45
Problems with greying population?
Rise in health problems such as heart disease and diabetes will strain the NHS Lack of specialised housing for the elderly Pensions crisis, lower dependency ratio and people claiming pension for longer
46
What is a World city?
Cities of power due to trade, political strength and communications Major capitals such as London Commercial cities such as Shanghai
47
What is a megacity?
Population of over 10 million
48
Los Angles as a HIC Megacity
• 24 million people • Rural pulls and urban pushes has caused suburban sprawl o Other Problems • Housing shortages • Urban tensions due to ethnic differences – 1992 race riots in Compton • Work – deindustrialisation has caused a loss in primary sector jobs • Waste – produces 50,000 tonnes of waste a day • Transport – 10 million vehicles, only 30% of people use public transport
49
'Donut City' in Los Angles
o Hole in downtown area o Caused by car, tyre, steel and aircraft factories closing due to deindustrialisation o This leads to dereliction and concentrations of poorer people o Watts and Huntington Park are the poorest areas after the Long Beach area lost one million jobs • Holes in downtown have been filled by TNC headquarters
50
How does Los angeles plan to improve itself?
• Progressive Los Angeles Network (PLAN) o Require a minimum age from employers o Increase urban parks and clean up contaminated brownfield sites o Developers must build affordable houses in all areas o ‘Clean’ buses and new rapid bus lines o Promote smart growth land use where people can drive less nearer to where they work, shop, study and play o Ban new ‘big box’ retail stores which undermine local retail shops
51
Mumbai as an LIC Megacity
Global Mumbai • Provides 33% of India’s entire tax revenue • 40% of international flights to India land in Mumbai • Rent in some parts of the city is higher than in London or New York • Globalization has led to Mumbai homing many TNCs such as Tata Steel ``` Hyper-urbanization • Hyper-urbanization – where the increase in urban population is happening so rapidly that the city can’t cope with the needs of the people • Home to 17 million people • 600 migrants arrive daily • By 2020 expected to have 26 million ```
52
Slums and informal sector in Mumbai?
Dharavi • 60% of Mumbai lives in poverty • 85% informal employment rate • 1 million people in 1 square mile Recycling • 80% of Mumbai’s waste is recycled in Dharavi – industry worth $1.5 million • Employs 10,000 children • 80% of plastic waste is recycled Pottery • Kumbharwada is the pottery zone in Dharavi • Pottery sold to an export company in the city
53
How is Mumbai trying to improve?
Began in 2004 Will create 1.1 million low-cost homes Slum populations will fall to 10-12% of their 2000 level Planned to build on Dharavi – land that costs $10 billion and is now owned by private and foreign investors Make governance more efficient and responsive – reduce the time needed for building approval Boost economic growth by 8-10% Build 305 green spaces Create 200,000 high end service sector jobs 500,000 jobs in construction, tourism and retail
54
Environmental impacts of globalisation?
Debt in central America means they deforest to earn foreign money, 500,000 km3 reduce to 90,000 km3 since late 1980s Burning of rainforests accounts for 25% of carbon emissions and loses a major carbon sink
55
Social impacts of globalisation?
* After the fall of the Soviet Union in 1989, Cuba faced crisis due to the loss of its subsidies * Began a ‘special period’ of development where it accepted foreign investment * Virgin Atlantic Airways began direct flights in 2004 * Varadero is a tourist enclave – due to all inclusive holidays where tourists don’t leave their resorts * Globalisation is diluting Cuban Culture – due to tourists and the internet * By 2005 there was 2.4 million tourists * In 2004 a new tourist currency was devised – ‘Cuban convertible peso’ – connected to US dollar
56
Global conscience?
1985 – Live Aid – Raise money for drought in Ethiopia | November 2015 - COP 21 - 190 countries - with the aim of keeping global warming below 2°C.
57
Tackling social issues of climate change?
Fair trade - More money goes to poor workers/farmers but as it becomes a larger scheme it is hard to monitor Ethically sourced goods - Consumers avoid purchasing goods made in 'sweatshop' conditions - GAP in 1990s got bad press Charitable donations and international aid - NGOs such as Oxfam and International governments collect money - can result in dependency such as the destruction of the clothing industry in Zambia from OECD donations Trade Reforms - To lower tariffs on low income country goods such as food from Africa, EU tariffs and subsidies means that food from within in EU is the much cheaper option - EU farmers do not like this
58
Tackling environmental issues of climate change?
Recycling Collection, sorting and processing takes time and uses energy. Reduces landfill. It is a cleaner option than incineration. Provides raw materials. Composting produces humus that is good for soil. Local buying Fiji water is a notorious brand of water that is transported 16,000 km from Fiji to the UK, even though local water costs far less to the environment. Importing food during the winter will produce less carbon than growing it in heated greenhouses. Organic Buying Organic food is imported from abroad, making it energy intensive. Organic asparagus from Peru is flown to the UK. Reduces the environmental impacts of food being produced using pesticides and chemical fertilizers. Carbon Credits Scientists doubt the effectiveness of afforestation as a solution to climate change; it was therefore removed from the EU Emission Trading Scheme. UK’s Carbon Neutral Company offers individuals and organizations a chance to erase the environmental damage they have caused.